Several large private and public banks have started using this option, said one of the sources, a banker, who declined to name the bank. Notices permitting verification are not public and have not been previously reported.

Verification is not mandatory and is intended for cases where another government identification card used for tax purposes, the Permanent Account Number (PAN) card, is not shared with a bank.

The prospect of banks using facial recognition has some privacy experts worried.

“This raises substantial privacy concerns, especially when India does not have specific laws on privacy, cybersecurity and facial recognition,” said Pavan Duggal, a lawyer and cyber law expert.

The government says it is targeting parliamentary approval of a new privacy law in early 2023.

The new measures can be used to verify the identity of people making deposits and withdrawals exceeding 2 million rupees ($24,478.61) during the financial year, when Aadhaar ID cards are handed out as proof of identity, said two government officials, who asked not to do so. named because the information is not publicly available.

The Aadhaar card has a unique number linked to a person’s fingerprint, facial and eye scan.

In December, India’s finance minister asked banks to take “necessary measures” following a letter from the Unique Identification Authority of India (UIDAI), which suggested verification should be done through facial recognition and iris scanning, especially when a person’s fingerprint authentication fails.

The letter from UIDAI, which is responsible for issuing Aadhaar cards, did not mention the approval framework for verification. Nor is it said that the bank can take action if the customer refuses.

The latest notification follows a government order last year that required citing an Aadhaar card or PAN number to make deposits or withdrawals above Rs 2 million in a financial year.

UIDAI and the Ministry of Finance did not respond to requests for comment.